Direct Issuance Platform for Accredited Investor Offerings Globally
[New York, NY – 12 March 2020 ] –KoreConX is proud to announce the launch of the Direct Issuance Platform for use by companies for their capital raising around the world.
There are more private companies around the world raising capital. Only 1% get funded by VC’s while the remaining 99% end up going through a number of other channels.
With recent changes to securities regulations around the world, like the JOBS Act in the USA, raising capital has in some ways become easier for companies. These changes provide more options to companies today, however, many companies are unfamiliar with them. New technologies like blockchain-enabled tokens have created a lot of interest in raising funds across borders. Many companies have fallen into this trap and do not understand the importance of complying with regulations in multiple jurisdictions, maintaining compliance and auditable records.
Two important regulations that allow companies to raise money in the USA are Regulation D and A+. The former deals with accredited investors and the latter with non-accredited. Many countries outside the USA offer somewhat similar regulatory options for accredited or sophisticated investors. For those interested in raising capital using a Regulation D offering, KoreConX is happy to now present an all-in-one end to end solution for companies to manage their fundraises.
“We are a global company that requires a global solution. We selected KoreConX because it will allow us to remain compliant with regulations not only in the USA and Australia but in multiple other jurisdictions around the world,” said Liam Twigger, CEO of PCF Capital. “This is a very important step in the history of PCF and we want to make sure our investors are protected and have a platform to be able to manage the entire lifecycle of the digital securities. That’s why we are using the best possible tools for the job.”
The KoreConX all-in-one “Direct Issuance Platform” provides companies an end to end solution to allow them to offer their securities to investors with the confidence that only those who qualify can view and invest. This reduces any issues with regulators in different countries. Companies today might be required to provide reports to securities regulators as to who they have distributed their offering to, and who has invested.
“Our vision has been to remove friction from all aspects of capital activities for companies around the world. Our Direct Issuance Platform is a direct result of understanding the friction companies have to go through when raising capital and then having to report to regulators. This is critical when companies offer their securities to accredited investors,” said Jason Futko, Co-founder and Chief Financial Officer.
The KoreConX all-in-one Direct Issuance Platform (DIP) is an ideal solution for companies doing direct issuance to investors. With full details of the offering, the company, its key management, and dataroom, investors can review the materials and walk through the online investment process at their leisure. The Direct Issuance Platform includes: a fully branded platform on the issuing company URL, KYC, ID verification, AML, suitability, investor verification, payment processing, subscription agreement, e-signature, and full post-transaction management (cap table management, investor relations, transfer agent/share registry, boardroom tools, data management, etc.). All of this, plus the full compliance back-end of the KoreConX platform makes it easy for issuers to manage their offering and adhere to regulations.
KoreConX is the world’s first highly-secure permissioned blockchain ecosystem for fully-compliant digital securities worldwide.
To ensure compliance with securities regulation and corporate law, the KoreConX all-in-one, AI-based blockchain platform manages the full lifecycle of digital securities including the issuance, trading, clearing, settlement, management, reporting, corporate actions, and custodianship. KoreConX connects companies to the capital markets and secondary markets facilitating access to capital and liquidity for private investors.
KoreConX is the first secure, all-in-one platform for private companies to manage their capital market activity and stakeholder communications. Removing the burden of fragmented systems and inefficient tools across multiple vendors, KoreConX offers a single environment to connect companies, investors and broker/dealers. Leveraged for investor relations and fundraising, private companies can share and manage corporate records and investments including portfolio management, capitalization table management, virtual minute book, security registers, transfer agent services and virtual deal rooms for raising capital. www.koreconx.com